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ADINARAYANA,[object Object],DEEPAK,[object Object],DWIPANNITA,[object Object],SHRUTI,[object Object]
INTRODUCTION,[object Object],[object Object]
Toyota became the world's largest automaker in the first half of 2008, with      sales of more than 4.8 million cars and trucks,
Toyota ranked 5th of the world's largest corporations in the 2008 FortuneGlobal 500.,[object Object],[object Object],Fortune Global 500,[object Object],[object Object]
Has168 distributors sell vehicles in more than170 countries/regions.,[object Object]
Just-In-Time (JIT)Defined:,[object Object],[object Object]
JIT also involves the elimination of waste in production effort
JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”),[object Object]
Big JIT (also called Lean Management) is a                   philosophy of operations management that seeks to   eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory
 Little JIT focuses more narrowly on scheduling goods inventory and providing service resources where and when needed,[object Object]
Produce as and when the customer wants
Produce products with perfect quality
Produce  with minimum possible lead time
Produce products only with features that customer wants-nothing more
Produce with no wastage ,[object Object]
Post JIT-,[object Object]
Minimizing Waste: Inventory Hides Problems,[object Object],Example: By identifying defective items from a vendor early in the production process the downstream work is saved,[object Object],Machine ,[object Object],downtime,[object Object],Scrap,[object Object],Vendor,[object Object],Change,[object Object],delinquencies,[object Object],Work in,[object Object],orders,[object Object],process ,[object Object],queues,[object Object],Engineering design,[object Object],Design,[object Object],(banks),[object Object],redundancies,[object Object],backlogs,[object Object],Example: By identifying defective work by employees upstream, the downstream work is saved,[object Object],Decision,[object Object],Inspection,[object Object],Paperwork,[object Object],backlogs,[object Object],backlogs,[object Object],backlog,[object Object]
Close to production plant,[object Object],  Produce Quality components,[object Object],  Maintain Good labor relations,[object Object],  Fewer suppliers (keiretsu),[object Object],  Contingency plans to cope with  ,[object Object],    disruptions like the effect of bad   ,[object Object],    weather, a truck drivers strike, blocking ,[object Object],    roads/ports etc.,[object Object],In order to practice JIT the suppliers of an organization must meet the criteria,[object Object]
Quality Commitment ,[object Object],Cost Saving,[object Object],Additional Resources and Capabilities,[object Object],Prior Work Experience,[object Object],Contract Terms,[object Object],Confidentiality,[object Object],Financial Stability,[object Object],Contd….,[object Object]
2) WHAT ARE THE ADVANTAGES                         & DISADVANTAGES OF JIT?,[object Object]
LOWER INVENTORY LEVELS,[object Object],LESS PRODUCTION CYCLE TIME,[object Object],QUALITY OUTPUT,[object Object],LESS MATERIAL HANDLING,[object Object],LESS WORKER IDLE TIME,[object Object],IMPROVED EMPLOYEE MORALE,[object Object],ADVANTAGES OF JIT,[object Object]
 Only 8 weeks required to reach full production capacity,[object Object],Automatic delivery system and aerial tunnels are developed ,[object Object],There is barely any stock required as most parts are made to order,[object Object],The need of conventional truck delivery is minimum,[object Object],BENEFITS FOR ,[object Object]
FORD &ITS SUPPLIERS STARTED WORKING AS ONE TEAM,[object Object],25% SHORTER TIME PRODUCTION TIME NEEDED,[object Object],SAVING  $6+ MILLION PER YEAR ON TRANSPORT,[object Object],            BENEFITS FOR ,[object Object]
Limitations of JIT,[object Object],[object Object]
More efficient when demand pattern is stable.
When there is a sudden change in the demand pattern it will take time for JIT system to react since there is no central information unit. ,[object Object]
Cont. . .,[object Object],It requires more training, more consciousness, more employee commitment. ,[object Object],More difficult goals to be attained. ,[object Object],Coordination between customer and suppliers need to be much better and disciplined. ,[object Object]
Toyota the Developer of JIT SystemToyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin seiki Company's plant in Aichi Prefecture stopped the delivery of all break parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of break parts had been restored, Toyota had lost an estimated $15 billion in sales.,[object Object],DISADVANTAGES FOR TOYOTA,[object Object]
3) Explain with examples (a) Kanban (b) Milk Run Concept. Discuss how these two concepts a help a firm like Toyota to be more efficient and effective. ,[object Object]

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Toyota

  • 1.
  • 2.
  • 3. Toyota became the world's largest automaker in the first half of 2008, with sales of more than 4.8 million cars and trucks,
  • 4.
  • 5.
  • 6.
  • 7. JIT also involves the elimination of waste in production effort
  • 8.
  • 9. Big JIT (also called Lean Management) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory
  • 10.
  • 11. Produce as and when the customer wants
  • 12. Produce products with perfect quality
  • 13. Produce with minimum possible lead time
  • 14. Produce products only with features that customer wants-nothing more
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. More efficient when demand pattern is stable.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.